This invention generally relates to a system for providing purchase incentives, and, in particular, to an electronic system for handling coupons redeemed at the time of purchase of products covered by the coupons. Currently the sequence of events leading up to the redemption of a coupon are as follows. The manufacturer prints a coupon and distributes it. The customer cuts out the distributed coupon, sorts it and stores it with other coupons. Once in the store, the customer searches for the coupon in a stack of coupons of varying size and then searches for the Product covered by the coupon. At the check stand the clerk examines the coupon's expiration date, verifies that the correct product was purchased, and subtracts the coupon's value from the purchase price. The clerk at some point in time performs a preliminary sort of the coupons by manufacturer and tallies them. The coupons are next sent to a clearing house that sorts and tallies all of the coupons for a store and sends them to the manufacturer for redemption. The manufacturer once again sorts and tallies the coupons before performing reimbursement. There is a need for a coupon system which reduces handling of the coupon and is convenient to use.